The UAE and Saudi Arabia have agreed to deepen their economic ties through a new memorandum of understanding that targets rail connectivity and electricity interconnection between the two countries.
UAE Minister of Investment Mohamed Hassan Alsuwaidi and Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz signed the MoU in Riyadh on October 8.
The agreement aims to develop rail links that make it easier to move goods and cargo across the border. It sets out general principles for rail connectivity and provides for technical and economic studies to support logistics integration. These studies are expected to improve supply-chain efficiency, ease cross-border trade and transport, and support wider economic development and regional integration.
The MoU also covers energy. Both sides will explore cooperation on electricity interconnection, including the exchange and sale of power. Technical, economic and environmental feasibility studies will assess where interconnection opportunities exist.
The agreement further calls for coordination with other GCC member states on expanding the Gulf electricity interconnection system. The goal is to improve energy-system efficiency and strengthen connectivity across the region.
Together, the rail and electricity components reflect a shared push to align infrastructure and energy priorities between two of the Gulf’s largest economies, in support of their common economic interests.
News Source: Emirates News Agency
